Apple has suffered a major defeat in its ongoing legal battle with Epic Games, as the Ninth Circuit unanimously rejected both rehearing petitions. The court's decision upholds a previous ruling that Apple violated California's Unfair Competition Law by restricting developers' ability to steer users to alternative payment methods.

This legal saga began in August 2020 when Epic deliberately modified Fortnite's in-app purchase system to bypass App Store rules, leading to its removal from the platform. After a lengthy trial, Epic won on a single claim while losing nine others. Judge Yvonne Gonzalez Rogers later found Apple in breach of her 2021 ruling and ordered the company to allow developers to link to alternative payment methods.

Apple argued the order improperly expanded the original ruling and appealed to the Ninth Circuit. The three-judge panel largely upheld the lower court's decision, prompting Apple to request rehearing before the same panel and en banc review. The court denied both requests, with two judges recommending en banc review but no full court vote being called. With limited options remaining, Apple may now attempt to take the case to the Supreme Court, though the justices previously declined to hear an earlier appeal.